SP500 Technical Analysis ES1! futures S&P 500 Index 5-09-23
Today’s Market Overview:
Yesterday, we saw the index attempting to stabilize at the opening, but the subsequent growth was, frankly, very weak, and there were not enough volumes in the market for a sharp index movement.
However, it is worth noting that major players continue to hold their short orders from the 4180 level earlier. At the same time, these same players placed their buy orders at the 4120 level, thereby squeezing the market. Thus, at the moment, the market is squeezed by these players: on the one hand, they strive to buy at the 4120 level, but they also want to open short positions from the 4180 level.
Today, we have a situation where major market players have placed their orders at two levels. These levels will be key for today. The first of them is the 4120 level, where experienced speculators will try to open their positions for continued trading upward. However, if the attempt to trade upwards is broken, we will see a further sharp decline in the index. This decline will be mainly caused by the liquidation of positions among speculators, with the biggest losses incurred by beginners. The second level is 4180, which also remains active as it has a large number of positions from major players.
If you didn’t see my analysis yesterday, you can check it out here.
What to expect today:
Today, at the market opening, I expect the index to attempt to drop to the 4120 level, where experienced speculators’ orders are now visible in the system. And today, I expect that it is here where the market reversal may occur with an attempt to move it to the 4180 level, which I mentioned to you yesterday. However, if the growth attempt is broken, we will see a sharp decline in the index. The main reason for such a decline will be the liquidation of positions opened around the 4120 level when experienced speculators abandon the idea of trading up to the 4180 level. In this case, there will simply be no buyers with sufficient volume in the market, and we will see a sharp drop in the index.
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